Monday, December 10, 2007

More Real Estate Woes For Michael Jackson

As Michael Jackson's Neverland Ranch steamrolls towards a January 19thforeclosure and he shacks up and squats with various family friends and benefactors around the country, there's even more bad news on his real estate horizon.

Mister Roger Friedman at Fox News, who always has the most current and salacious gossip about The White Lady, reported late last week that according to the L.A. County Treasurer, the long time Jackson family home on Hayvenhurst Avenue in Encino CA is in tax default to the tune of $16,283 and ten damn cents.

Jackson, who is the owner of record on the 10,476 square foot house, is required to pay the tax debt or the County is sure to take whatever steps are required to recover the back taxes. It's one thing to screw with the banks children, but it's another foolish operation entirely to mess with with the tax man, because he'd rather sell your children to a molester than let your back taxes slide. Oh, wait, hmm...

Interestingly and shockingly, the 5 bedroom and 7 bathroom house on Hayvenhurst can't be sold at much of a profit given that there's already a $4,000,000 mortgage on the property, which would surely eat up much of the sale price of the home IF the family ever decided to sell.

As Your Mama and the well informed Mister Friedman see it, The White Lady could easily sell his stake in Sony/ATV Music Publishing which would not only cover his mind altering (and reported) $340,000,000 debt, but leave enough bank to provide Mister Jackson, those three white children of his, and the krazy talking RaymoneBain a nice home and a plush life for many years to come. But alas...

In the meantime, where's Tito? Where's Janet or that freaky looking LaToya? Jermaine? Marlon? Where are you? Your Mama knows that one of you has got to have the financial wherewithal to pay the sixteen grand to save the family house.

P.S. Your Mama would like to thank B.J. Beaverman for her research on this one.

41 comments:

So like, um, hope he has some frequent flyer miles stored up, cause there's a certain Shiek waiting for him back in a UK court room, too. Mama, this is a story that just keeps getting worse. Those poor children.

He owns half of Sony / ATV Publishing which controls like 200,000 songs including most of the Beatles & Elvis Presley's songs ... It's valued at $1 Billion + ... so why doesn't he just sell that & get $500M or thereabouts? He also owns his own song catalog which is worth around $150M .. Technically he's still asset rich ... I mean, Paul McCartney has a fortune of $1.5 Billion so why not just sell the Beatles catalog back to him & hey presto - Neverland is saved!

Michael remains a suspicious mystery to me on more levels than I'm able to address. If he'd just show an iota of responsibility or maturity now that he's pushing 50, it would do wonders for his 'in the toilet' public perception because the bar has been set so low. But alas, even that is asking too much apparently, and makes it impossible for me to feel the least bit of sympathy for him.

I think Mikey may be squatting with family so he can dig up some of those old shoe boxes he buried in their yards. Recently he was out prowling farm country here on the east coast looking for a new pad to put his ferris wheel. This time in Earleville MD here: http://rej.careercast.com/properties/search/detail.php?qBackToSearch=qAction%3Dsearch%26qCompid%3D45a7f0425cf50%26pagesize%3D25%26view%3Ddetailed%26qtotal%3D12457%26qSortBy%3DPrice%26qSortDirection%3DDESC&qAdid=rejsothebylinerCC6197238&propertyNumber=21

From what I understood, his own catalog is part of the Sony ATV holdings, not a separate 150m.

The siblings don't have a pot to piss in other than Janet. If she is smart, she disown the lot of them.

His brothers are so broke that a couple of them once had to wait in a retail store while the White Lady's accountant sent over a check to cover their purchases. Another time I saw the same two brothers pushing a rolls royce into a gas station in West Hollywood because they had run out of gas.

"His own catalog is held under Mijac Music Publishing I believe. It may have changed recently but it was a separate entity."

I think that has been restructured during one of the other bailouts.

In a certain way I can understand why he wouldn't want to sell his stake in the music publishing. It will continue to generate income for decades to come and is probably the only income source he has left.

But he needs to take a long, hard look at his lifestyle and stop the insanity to be able to enjoy those coming decades.

It does not matter how much income that Sony shit brings in, he's swimming in debt. It takes a lot of money to service $340M in debt.

Just imagine his monthly payments on that shit?

And therein lies his problem as I understand it...his admittedly considerable income still falls short of what's required to service the debt and make the calls for payment.

And it appears from reports that no one is willing to lend him MORE money against his one big asset. Too bad.

So the only option he's got left as far as I can tell is to sell Sony/ATV shit or protect it somehow and go bankrupt.

I suspect he's shopping the Sony/ATV thing around...but who'd buy it now when they know that they can probably get it at a substantial discount down the line when he's REALLY desperate to sell it? If it's worth $500M now, it'll be worth $450M or even $400M when he's really desperate.

Sounds like he is desperate now. I remember when he was fighting with Sony that they claimed they could take his interest in the publishing due to the money he owns them. I wonder if that is still true?

MJ is really and truly up the financial creek sans paddle or bailout. According the forensic accountant who examined his books and testified at his criminal trial, MJ's financial situation is far grimmer than his pr agent represents. Here's a few points:

1. MJ currently has a joint ownership with of the Sony/ATV catalog. Sony has been putting its money into acquiring new copyrights and administering the Sony/ATV music catalog; MJ hasn't. Which means that over the years there's been a growing value imbalance between MJ's share of the catalog and Sony's. When MJ finally loses/sells his share, he'll have to pay his share of those past expenses. Short and sweet: the value of MJ's share of the catalog is going down. He may own about half of the catalog, but that share is only worth roughly 20% of the entire catalog's value once you subtract his share of the catalog-related liabilities that will have to be paid back to Sony.

2. The value of the Mijac catalog has also gone down. Revenue fromthe catalog decreased by nearly 30%.

3. MJ faces a steep capital gains tax bite when he sells his assets.Between his tax liability and his debts, it's doubtful he'd come outmuch ahead if he did sell his three major assets: Mijac, Neverland,and his share of the Sony/ATV catalog.

4. MJ's interest payments on his massive loans were positivelyruinous even before they were acquired by Fortress. Fortress originally was charging MJ an over 20% interest rate on theloans. They agreed later to refinance, but the huge sums of interest MJ is obligated to pay means he has very little cash left to pay for anything else. And now the loans are due again and he can't find anyone willing to refinance again.

5. The Beatles copyrights are the best-known part of the Sony/ATV catalog - but what most people aren't aware of is that those copyrights will be reverting to Lennon/McCartney starting in 2013. That's just six years away. And Macca has gone on record as saying he's inclined to manage those rights himself rather than re-sign with Sony/ATV or any other company. Makes sense - that way McCartney/Lennon will collect 100% of the royalty instead of whatever percentage the current deal with Sony/ATV gives them. This naturally will have an impact on the value of the Sony/ATV catalog.

6. Overall, MJ's net worth has been steadily decreasing as he hasborrowed against his primary assets and spent the borrowed money. Asthe accountant pointed out in his testimony, sooner or later you end up with no means to pay one's bills, except by selling off assets.

Finally, in response to all the Team MJ hoo-ha that the Sony/ATV catalog is worth a squillion dollars: nobody knows what it's really worth unless/until it is sold on the open market. The actual income earned from the catalog, according to the accountant, doesn't even come close to justifying such an inflated estimate of its value. Sony may or may not exercise its option to acquire the rest of MJ's share - but even if they do, once MJ pays them all the administrative fees and expenses he owes them, they'll cut him a pretty small check. After which, it is worth repeating, he's gonna have to pay taxes.

He'll be lucky if he can afford a million-dollar home after his assets are sold and all his debts and taxes are paid.

The scene....Persian Palace fine arts in Beverly Hills........"Im sorry Mr Jackson but the charge of $600,000 for the pair of vases has been declined"said the owner in his most I'm trying not to shit in pants voice."That's OK I guess we'll only take one of them then,and forget about the Ming tomb things too they scare me!"

The SONY/ATV catalog isn't worth what people think it is. Michael Jackson's share has declined over the years and once the Lennon/McCartney songs revert in 2013 the catalog's value will plummet even more. And of course Paul McCartney and Yoko Ono will manage it themselves, they are smart business people, very smart.

Michael Jackson needs to sell everything and buy a condo in Century City. Case Closed.

old hag, I'll give you 5 cents for the lot. I need some paper to start a fire in the fireplace. It gets cold up here in on the 90th floor penthouse in the Westwood/Century City/Wilshire/Pacoima/Fresno corridor.

Outstanding blog! It was only a matter of time until he spent is huge fortune. I have gotten word that he may start to tour and create some new albums to catch up. It will be interesting to see what happens!Colorado Springs Real Estate Resources

This is all BULLSHIT Because none of it is true. MJ still owns everything. The publishing rights are where the profits are which MJ and Sony will always have. Sony Atv now has 600000 songs and are jointly owned by both they have amassed a music publishing company worth 5 billion dollars.Thriller has sold 100000000 copies and is sampled and proped by every artist today from Usher to Beyonce to Madonna

It is 06/12/08 what has he sold or lost NOT A DANM THING DEAL WITH IT!

Dear Michael, you're richer than I'll ever be, you can dance, sing and act. I believe that you've been through hell with greedy-ass people, users and free-loaders on ya back. fu#k those haters and protect what you have. You're too darn nice and that's been the very tool that people have seemed to use against you. look up and stop looking over!

oh my god. Those ugly comments are obviously posted by the same person. Probably by one of the filthy animals that are jelous from the king of our hearts. They dont even have a million dollar and they start talking about his millions.Millions still adore michael jackson and many rich people will stand by him if he was in need one day. And i dont think he will be in need because he is the richest man in the music industry . The problem is that he is not that liquid with cash money.We love u more mike.

why in the heck isn't janet shelling out some money to help support her parents. why was poor michael responsible for everything. janet has millions let her start taking of her mother and michael's heirs.

Okay if any of this true I wouldn't mind helping pay for the house. I mean come on she's raising children. If I had known this I would have paid the house off it kills me to know that the house is being looked at for financial problems. Man I gotta do something being an producer and Jackson family fan I have to help them.